The National Association of Realtors is expecting total sales of resale homes this year to drop 11.4 percent compared to 2007 and the median price of resale homes to fall 7 percent — both projections are down from an earlier forecast.

The association is calling for 5.01 million sales of resale homes this year, compared with 5.65 million in 2007 and 6.48 million in 2006.

In a previous forecast released last month, the association anticipated that sales of resale homes would drop 8.9 percent and resale prices would fall 5.6 percent this year compared to last year. And a month earlier, NAR was projecting that sales of resale homes would fall 6 percent this year compared to last year.

The latest NAR economic forecast, released today, anticipates a 6.9 percent rise in sales of resale homes and a 2.4 percent rise in median resale home prices in 2009 compared to 2008.

New single-family home sales are expected to drop 34.4 percent this year compared to 2007, and to fall 8.9 percent next year. That follows an 18.1 percent drop in new-home sales in 2006 and a 26.3 percent drop in 2007.

The median new-home price is expected to drop 4.9 percent this year and rise 3.3 percent next year, according to NAR’s forecast. The 30-year fixed-rate mortgage rate is expected to average 6.3 percent this year — level with 2007 — and to rise to 6.7 percent in 2009, with the federal funds rate averaging 2.3 percent this year and rising to 3.1 percent in 2009.

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Real estate news and analysis that gives you the inside track. Subscribe to Inman Select for 50% off.SUBSCRIBE NOW×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription